Adoption of EITF – Revenue Arrangements with Multiple Deliverables When an invoice/order has an undelivered item (item that will not. The Clock is Ticking to Adopt the Latest EITF Revenue Recognition Rules. We’re firmly over the halfway mark for – and if you’re in. This question was asked by an attendee at a recent Proformative Rev Rec webinar: Would EITF cover arrangements with customers that included both.
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This question was asked by an attendee at a recent Proformative Rev Rec webinar: Would EITF cover arrangements with customers that included both strategic services that have a stand alone value not associated with any software sold to the customer PLUS software that may also be sold to the customer within the same transaction?
I think that the answer to this question is the arrangement appears to fall under software revenue recognition SOP and not EITF because it has software and does not have a tangible product element. This would appear to be a multiple element software transaction. There could also be an impact by SOP I think I would look first to SOP and whether the services would be considered a “software related item”.
If they are, I agree that this would be considered a multiple element software transaction. However, your question indicates that the services have standalone value not associated with the software. That would indicate that those services may eittf be a software related item.
The software sale would be governed by SOP Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business. Please email content proformative. Sign In Sign Up.
How do you treat EITF revenue recognition on unrelated items in the same sales order?
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